BI to issue new banking rules

BI to issue new banking rules

NUSA DUA, Bali: The central bank will soon release two crucial
regulations to accelerate banking activities, strengthen banking
institutions and to boost real economic sectors, including small-
to medium enterprises (SMEs).

Speaking on Wednesday after the opening of a three-day seminar
on microbanking in Nusa Dua, Bali, Bank Indonesia governor
Burhanuddin Abdullah said the new regulations were expected to
accelerate economic growth to around 6 percent in 2005.

The regulations also aim to empower the SME sector and boost
infrastructure development, which was halted due to the economic
crisis.

As for SMEs, the central bank will grant greater flexibility
to both private and state banks to provide loans to the sector.

The revitalization of the two sectors are expected to promote
economic activities across the country.-- JP